Rio's carnival expected to boom economy

Rio de Janeiro authorities are expecting almost 1 billion USD in economic activity during this year’s carnival, 12.5% more than 2020, the last carnival before the COVID-19 pandemic.

According to a study from Rio’s Economic Development Secretary, Carnival is the city’s biggest event in terms of tourism numbers and tax receipt, attracting more than 2 million tourists and collecting 23% more service tax in the event’s month compared to the rest of the year.

Tax revenue from festivities-related services averaged 5 million USD during carnival months from 2011 to 2019. Hotels in the city are almost at full capacity, with many already at 90% a week ahead of the official opening on Friday.